Pound News: GBP Struggles as UK Factory Sector Faces Setbacks
The Pound (GBP) struggled today following the release of the latest UK factory data for July. Despite factory growth being maintained supply chain pressures have dampened confidence in the manufacturing sector.
However, with UK Covid-19 infections showing a falling trend, some Pound investors have become more optimistic about the outlook for the nation’s economy.
Looking ahead, GBP traders will eye Thursday’s Bank of England (BoE) interest rate decision, which is expected to hold at 0.1%. Could a more dovish monetary policy statement from the BoE weigh down the Pound later this week?
Euro News: Single Currency Rises as German Manufacturing Data Beats Forecasts
The Euro (EUR) rose today after the latest German manufacturing data for July beat forecasts, rising from 65.6 to 65.9.
Germany is the Eurozone’s largest economy, so any improvement in the nation’s manufacturing sector translates positively for the bloc’s overall economic outlook.
Today also saw the release of Germany’s retail sales data for June, printed above expectations in June.
Looking forward, Wednesday will see the release of the Eurozone’s latest retail sales data for June and the bloc’s PMI composite figure for July.
Any improvement in Eurozone economic growth would further boost the Euro exchange rate against the major currencies.
US Dollar News: Souring Risk Sentiment Drives-Up ‘Greenback’ Safe-Haven Demand
The US Dollar (USD) rose steadily this morning following underwhelming Chinese factory data. As a result, concerns for the Chinese economy – the second largest in the world – has driven-up demand for the safe-haven ‘Greenback’.
Added to this, growing concerns over the spread of the Delta variant of the coronavirus throughout Asia has also soured risk sentiment, benefiting the US Dollar.
Today also saw the release of the latest US ISM manufacturing PMI for July, in which a weaker-than-expected expansion in the US factory sectors has capped the upside in the US Dollar.
Canadian Dollar News: Underwhelming Canadian Economic Growth Weighs on CAD
The Canadian Dollar (CAD) put in a mixed performance today following Friday’s underwhelming Canadian GDP data, which showed a 0.3% contraction back in May and a 0.5% contraction in April.
In absence of any notable Canadian economic data, oil prices has driven the CAD exchange rate. But with risk sentiment being dampened by Delta variant fears, demand for the ‘Loonie’ has been limited.
Australian Dollar News: Souring Risk Sentiment Limits Appeal of Risk-Sensitive ‘Aussie’
The Australian Dollar (AUD) exchange rate suffered today as growing concerns over China’s economic recovery has dampened confidence in the outlook for Australia’s economy, which relies heavily on trade with China.
07:00 DE Retail Sales (Jun)
08:55 DE Markit Manufacturing PMI (Jul)
09:30 UK Markit Manufacturing PMI (Jul)
14:45 US Markit Manufacturing PMI (Jul)